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Byker District Heat Network

Karbon Homes

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Key details

Contracting authority
Karbon Homes
Public authority - sub-central government
Region
Newcastle upon Tyne
Delivery: North East England, United Kingdom
Contract value
£145,000,000ex VAT
£174,000,000 inc VAT
Deadline
20 November 2026
Enquiry deadline
11 November 2026(questions / clarifications)
Award decision
11 December 2026(estimated)
Published
19 October 2026

Procurement

Contract period
1 January 2027 - 1 April 2047
41 years
Possible extension to 1 April 2067 · 40 years, 3 months in total
Procedure type
Competitive flexible procedure
CPV classifications
  • 71334000 Mechanical and electrical engineering services
  • 71321200 Heating-system design services
  • 09323000 District heating

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Description

Karbon Homes invites tenders for the design, build, finance, operation and maintenance of the decarbonised Byker District Heat Network in Newcastle upon Tyne. The Byker estate is Grade II* listed, covers around 80 hectares and is live and occupied throughout. There are 1,985 connections, being 1,815 Karbon Homes connections and 170 freeholder and non-domestic connections presently supplied by Newcastle City Council, of which 1,978 are residential and 7 are non residential. The network is served by the Walker Road energy centre and twelve substations.

A preliminary market engagement notice for this procurement, reference 2026/S 000-060054, was published on 25 June 2026. The description of the scheme in that notice has been superseded and tenderers should refer to the information contained within this tender pack.

All documents relating to this tender are available to download from the Panacea e-Sourcing portal.

Submission Instructions:

Electronically via the e-Sourcing portal. Suppliers must submit one copy of their tender electronically, with any additional documents required or requested. Documents must be compatible with Microsoft Office or Adobe/PDF.

Should you require technical support with the e-Sourcing portal please email them directly at:

Tenders must be submitted using the above e-Sourcing portal. Tenders submitted via postal, or email methods will not be accepted.

How to engage

Indicative Timeframes The following indicative timeframes are set out to inform respondents. They are subject to refinement based on SMT feedback and GHNF funding conditions. 1. Issue of SMT and prospectus: July 2026 2. SMT response deadline: 17th July 2026 3. Market engagement sessions (1:1 / group): August 2026 4. Publication of refined opportunity shape / procurement strategy: August 2026 5. Procurement launch: August – September 2026 6. Preferred partner identified: September 2026 7. Contract award / financial close: March 2027 8. Construction commencement: April 2027 9. GHNF construction spend-by deadline: Financial Year End 2028 10. Scheme in service / operational handover: 2028 Onward

Contact

Address
5 Gosforth Park, Gosforth Business Park, Newcastle upon Tyne, NE12 8EG
Contact name
Chris Smith

Bid documents

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Identifiers

Buyer reference
202606 - GS32
Notice ID
098720-2026
OCID
ocds-h6vhtk-06bd8c

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External ID: fts-ocds-h6vhtk-06bd8c • Added 25 June 2026